M/S PARAG FANS & COOLING SYSTEMS LTD., Dewas V. THE ACIT 1(1), Ujjain

ITA 372/IND/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2238 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 22-06-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 26-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P MOURYA
• Assessee Lawyers: S S DESHPANDE
• Keywords: Business income; Commercial expediency
• Section: 37

Judgement Text

M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 1 OF 12 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE .. , ..!,#$ # % BEFORE SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER M/S. PARAG FANS & COOLING SYSTEMS LTD, B INDUSTRIAL AREA NO.1 , A.B. ROAD, DEWAS V. INCOME TAX OFFICER, 1(3), INDORACIT-1(1), UJJAIN & / APPELLANT ()& / RESPONDENT . # . ./ PAN: AACCP1895K &* # / APPELLANT BY SHRI S.S. DESHPANDE, CA ()&* # / RESPONDENT BY SHRI R.P. MOURYA, SR. DR + !,-*$ / DATE OF HEARING 8.08.2017 ./012 *$ / DATE OF PRONOUNCEMENT 11.08.2017 ORDER PER O.P. MEENA, AM. 1. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)UJJAIN [ IN SHORT REFERRED . . ./ I.T.A. NO.372/IND/2016 ! ,2 / ASSESSMENT YEAR: 2011-12 M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 2 OF 12 TO AS THE CIT (A)] DATED 16.02.2015 PERTAINING TO A SSESSMENT YEAR 2011-12. 2. GROUND NO.1 & 2 RELATES TO ADDITION OF RS.59,90,620 /- BEING THE SALES COMMISSION PAYMENT TO SISTER CONCERN EVEN THOUGH COMPLETE DETAILS WERE FILED BEFORE THE LOWER AUTHOR ITIES AND IT WAS PROVED BEFORE THE CIT(A) THAT THE SELLING AGENTS HA VE RENDERED THE SERVICES FOR EFFECTING THE SALE OF THE ASSESSEE COM PANY. 3. SUCCINCTLY, THE FACTS BROUGHT OUT TO FROM THE ORDER S OF LOWER AUTHORITIES ARE THAT THE ASSESSEE HAS DEDUCTED COMM ISSION OF RS.64,16,013/- PAID TO THE SISTER CONCERN I.E. M/S. B3 PROJECTS AND CONSULTANTS PRIVATE LIMITED, 102, OMSHRI APARTMENT, 264, DHARMPETH EXTENSION, SHIVAJI NAGAR, NAGPUR WHICH IS ALSO A SHARE HOLDER OF THE COMPANY HAVING 399035 SHARES. IT WAS NOTICED BY THE AO THAT THERE WAS NO TREND TO PAY COMMISSION IN EAR LIER YEARS. THIS EXPENDITURE INCURRED BY THE ASSESSEE ONLY IN THE YE AR UNDER CONSIDERATION WHEREAS THE ASSESSEE COMPANY IS DOIN G THIS BUSINESS SINCE LONG WHERE SUCH PRACTICE WAS NOT IN EXISTENCE , THEREFORE, THE ASSESSEE COMPANY WAS ASKED TO JUSTIFY THE PAYMENT O F COMMISSION MADE TO ITS SISTER CONCERN IN WHICH SHRI SANDEEP BA RJATYA IS A DIRECTOR AND ALSO HE IS DIRECTOR IN THE ASSESSEE CO MPANY. THE REPLY M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 3 OF 12 WAS RECEIVED THROUGH E-MAIL DATED 20.03.2014. IT W AS STATED THAT M/S. B3 PROJECTS & CONSULTANTS PVT. LTD WAS TAKEN S OLE AND EXCLUSIVE DISTRIBUTOR OF THE PRODUCTS OF THE ASSESS EE IN THE ASIA INCLUDING WHOLE OF INDIA FOR SALE AND PROMOTION OF PRODUCTS VIDE AGREEMENT DATED 9 TH FEBRUARY, 2008. THEREFORE THE EXPENDITURE INCURRED FOR THE PURPOSE OF MARKETING AND BUSINESS PROMOTION IS LIABLE AS DEDUCTION U/S 37 OF THE INCOME TAX ACT, 1 961. HOWEVER THIS SUBMISSION OF THE ASSEESSEE WAS NOT FOUND ACCE PTABLE BY THE AO ON THE GROUND THAT THERE WAS NO SUCH PRACTICE TO PAY THE COMMISSION IN EARLIER YEARS, THEREFORE, THE ASSESSE E COMPANY FAILED TO ESTABLISH THE COMMERCIAL EXPEDIENCY AND THE EXPE NDITURE WAS INCURRED WHOLLY AND EXCLUSIVELY FOR BUSINESS PURPOS ES IS TERMS OF RATIO LAID DOWN IN THE CASE OF GOODLAS NEROLAC PAIN TS LTD. V/S CIT (BOM)S 137 ITR 53 AND ASSAM PESTICIDES & AGRO CHEMI CALS VS. CIT (GAU) 227 ITR 846 AND FROM MERE MAKING AN AGREEMENT AND DEBITING AN EXPENDITURE ON WHICH THE ASSESSEE HAS FAILED TO ESTABLISH THE BUSINESS COMPULSION, HENCE, EXPENDITU RE IS NOT ALLOWABLE. THEREFORE THE AO CONCLUDED THAT THE ASS ESSEE HAS ADOPTED A MODUS OPERANDI TO REDUCE ITS PROFITABILIT Y BY WAY OF MAKING AN AGREEMENT WITH THE DIRECTORS COMPANY IN WHICH NO M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 4 OF 12 BUSINESS COMPLETION IS FOUND AND THE EXPENDITURE SH OWN TO BE INCURRED IS COMING BACK IN THE HANDS OF THE COMPANY AS DIRECTOR SHRI SANDEEP BADJATIA BEING THE OWNER OF M/S B3 PRO JECTS AND CONSULTANTS PVT. LTD, NAGPUR. THEREFORE THE ENTIRE COMMISSION OF RS.64,16,013/- WAS DISALLOWED. 4. AGGRIEVED WITH THE ASSESSMENT ORDER THE ASSESSEE FI LED AN APPEAL BEFORE CIT(A) WHEREIN IT WAS CLAIMED THAT M/ S B3 PROJECTS AND CONSULTANTS PVT. LTD. COMPANY WAS INCORPORATED ON 6 TH AUGUST, 2007 THE DETAILS OF THE TURNOVER FROM SECOND YEAR A ND THE INCOME TAX RETURNS FOR THE ASSESSMENT YEAR 2009-10 TO 2013 -14 WERE FILED. IT WAS CLAIMED THAT THE COMMISSION WAS PAID TO INCR EASE THE TURNOVER OF THE COMPANY IN THE EARLIER YEARS AND TH E APPELLANT HIMSELF WAS DOING MARKETING AND NOT INCURRED ANY EX PENDITURE IN THIS REGARD. THE TURNOVER FOR THE PRECEDING YEAR WA S RS. 5.11 CRORES WHICH HAS INCREASED IN THE YEAR UNDER CONSIDERATION TO RS.7.23 CRORES, THUS THE TURNOVER HAS BEEN INCREASED TO RS. 2.12 CRORES. HOWEVER, THE CIT(A) DID NOT CONVINCE WITH THE EXPLA NATION OF THE ASSESSEE AND OBSERVED THAT THE PAYMENT OF COMMISSIO N VIS--VIS ALSO INCREASED IN TURNOVER @32% WHICH IS EXORBITANT LY HIGHER WHEREAS NORMAL PAYMENT OF COMMISSION IS ABOUT 2%. FURTHER THE M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 5 OF 12 ASSESSEE FAILED TO ESTABLISH THE COMMERCIAL EXPEDIE NCY FOR JUSTIFICATION FOR PAYMENT OF VERY HIGH COMMISSION. IN THE EARLIER YEARS THE APPELLANT HAS NOT ENGAGED ANY OUTSIDE AGE NCY AND NO SUCH COMMISSION WAS PAID IN EARLIER YEARS, CONSIDER ING THESE FACTS THE CIT(A) CONSIDERED ALLOWABLE COMMISSION AT 2% ON THE INCREASED TURNOVER OF RS.2,12,69,656/- AND COMPUTED THE RELIE F OF RS.4,25,393/- AND CONFIRMED THE BALANCE ADDITION OF RS.59,90,620/- I.E. (64,16,013 4,25,393). 5. STILL NOT SATISFIED WITH THE APPELLATE ORDER, THE A SSESSEE FILED THIS APPEAL BEFORE US. THE LD. COUNSEL FOR THE ASS ESSEE SUBMITTED THAT THE ASSESSEE COMPANY WAS STARTED IN THE YEAR 1 991. HOWEVER, THERE WAS HUGE LOSSES BECAUSE OF THE MARKET CONSTRA INT IN THE SALES. THE COMPANY ENTERED INTO A SALE AGREEMENT DATED 09. 02.2008 WITH M/S. B3 PROJECTS & CONSULTANTS, NAGPUR AND APPOINTE D THEM AS SOLE AND EXCLUSIVE DISTRIBUTOR IN ASIA (PAGE 30 OF PB). AS PER THE TERMS OF THE AGREEMENT THE DISTRIBUTOR HAVE TO ACHI EVE A MINIMUM TARGET OF SALE OF RS.550 LAKHS EXCLUSIVE OF TAXES. IT WAS ALSO STIPULATED THAT AS PER PARA 3.4 THAT THE ASSESSEE S HALL OBTAIN ORDERS IN THE NAME OF THE DISTRIBUTOR. CLAUSE AT 4.1 PROV IDED THAT THE ORDERS WOULD BE BOOKED AT THE LIST PRICE OF THE PRI NCIPAL WHICH MAY M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 6 OF 12 BE REVISED AFTER EVERY SIX MONTHS AND THE DISTRIBUT OR WAS REQUIRED TO FURNISH WEEKLY REPORTS AND NOT INDULGE IN THE SA LE PROMOTION OF SIMILAR ITEMS AND DEPOSIT RS.20 LAKHS WITH THE COMP ANY. IT WAS SUBMITTED THAT SHRI SANDEEP BARJATYA JOINED THE PRI NCIPAL COMPANY AS DIRECTOR FROM 10.12.2008 PUTTING UP WITH THE FIN ANCIAL HOLDIDNG OF 15% SHARES. HOWEVER, SINCE IN THE INTIAL PERIOD THE MINIMUM GUARANTEED SALE OF RS. 5.5 CRORES WAS NOT ACHIEVED, THEREFORE, NO COMMISSION WAS PAID UPTO THE FINANCIAL YEAR 2009-10 . IT IS ONLY DURING THE FINANCIAL YEAR 2010-11 RELEVANT TO THE A SSESSMENT YEAR UNDER CONSIDERATION SALES WENT TO THE TUNE OF RS.7. 23 CRORES AND FROM THIS YEAR THE ASSESSEE STARTED PAYING THE COMM ISSION TO THE DISTRIBUTOR. HOWEVER, THE AO DISREGARDED THESE SUBM ISSIONS ON THE GROUND THAT NO COMMISSION WAS PAID IN EARLIER YEARS WHICH IS NOT CORRECT AS THE DISTRIBUTOR HAS NOT ACHIEVED THE TAR GET OF RS. 5.5 CRORES IN THE EARLIER YEARS, HENCE NO COMMISSION WA S PAID TO THEM. FURTHER THE ASSESSEE COMPANY ACCUMULATED HUGE LOSS OF RS.3.07 CRORES AND IT IS ONLY BECAUSE OF THE EFFORTS OF THE SOLE DISTRIBUTOR THE SALE HAS INCREASED AND THE ASSEESSEE STARTED MAKING PROFIT FROM THIS YEAR. IT WAS ALSO POINTED OUT THAT AT THE TIM E OF ENTERING THE AGREEMENT, THE DISTRIBUTOR WAS ALTOGETHER A DIFFER ENT ENTITY AND WAS M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 7 OF 12 NO WAY CONNECTED WITH THE ASSESSEE. IT WAS ONLY BE CAUSE OF THE NEED OF THE ASSESSEE, THE DISTRIBUTOR JOINED HANDS AND INVESTED THE MONEY AND TOOK ACTIVE PARTICIPATION IN THE MANAGEME NT OF THE COMPANY WHICH IMPROVED THE RESULTS OF THE ASSESSEE COMPANY. THEREFORE THE CONTENTION OF THE AO THAT IT IS A SIS TER CONCERN AND NO BUSINESS ACTIVITY IS PROVIDED IS CONTRARY TO THE FA CTS ON THE RECORD AND WITHOUT ANY BASIS. THE DISTRIBUTORS HAVE RENDER ED THE SERVICES TO THE ASSESSEE AND BECAUSE OF THEIR EFFORTS, THE S ALES HAVE INCREASED NEARLY 50% AND AS SUCH, THE APPOINTMENT W AS A BUSINESS EXPEDIENCY, THEREFORE, NO DISALLOWANCE SHOULD HAVE BEEN MADE. IN SUPPORT OF THIS CONTENTION LD. COUNSEL ALSO PLACED RELIANCE IN THE CASE OF CIT V/S PURE PHARMA PVT. LTD 270 ITR 382 (M P), 144 TAXMAN 364 MP, M/S. PROCHEM LABORATORIES PVT. LTD, INDORE V/S ACIT 3(1), INDORE ITA NO.86/IND/2010 DATED 28.4.201 1 OF INDORE TRIBUNAL. ITO V/S NEW ERA SWITCH GEARS, UJJAIN 2 IT J 418 , BHARAT MEDICAL STORES V/S CIT 308 ITR 373 (P&H), CIT V/S G OODLASS NEROLAC PAINTS LTD. 188 ITR, M/S. KRITI INDUSTRIES INDIA LTD, INDORE V/S ACIT 4(1), INDORE ITA NO.268/IND/2016 DATED 27. 10.2016. 6. ON THE OTHER HAND, THE LD. DR HAS RELIED ON THE ORD ERS OF THE LOWER AUTHORITIES AND POINTED OUT THAT THE CONTENTI ON OF CIT(A) ON M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 8 OF 12 PARA 4.2 FINDING THAT THE PAYMENT OF COMMISSION VIS --VIS INCREASE IN TURNOVER IS ABOVE 32% WHICH IS VERY HIGH ON WHIC H THE CIT(A) HAS ALLOWED COMMISSION @2% ON ENHANCED RATES IS REA SONABLE. THEREFORE, THE ORDER OF THE LOWER AUTHORITY MAY BE SUSTAINED. 7. WE HAVE CONSIDERED THE FACTS AND CIRCUMSTANCES OF T HE CASE AND FIND THAT THE ASSESSEE COMPANY IS DOING MANUFAC TURING OF VARIOUS KINDS OF INDUSTRIAL PRODUCTS SUCH AS FRP AX IAL FLOW FANS, FRP SEAL DISC, FRP FAN STACKS, FRE FILL HANGERS WHI CH ARE BEING USED IN VARIOUS POWER PLANTS, STEEL PLANT, COAL MIN ES AND OTHER HEAVY INDUSTRIES. THE COMPANY HAS STARTED IN THE Y EAR 1991 HOWEVER IT HAS BEEN INCURRING HEAVY LOSS DURING THE EARLIER YEARS. IT IS SEEN THAT THE COMPANY ENTERED INTO SALE AGREEME NT ON FEBRUARY, 9, 2008 WITH M/S B-3 PROJECTS & CONSULTANTS, NAGPUR WITH THE CONDITION THAT IF THE SALES/TURNOVER OF THE ASSESSE E COMPANY IS ACHIEVED THE MINIMUM TARGET OF 5.50 CRORES, THEN TH E SOLE DISTRIBUTOR SHALL BE ELIGIBLE FOR COMMISSION. SINC E, DURING THE ASSESSMENT YEAR UNDER CONSIDERATION, SALES HAVE INC REASED TO RS.7.23 CRORES, THEREFORE THE ASSESSEE COMPANY HAD PAID THE COMMISSION OF RS.64,16,013/- DURING THE YEAR TO M /S B-3 PROJECTS & CONSULTANTS, NAGPUR. IT IS ALSO NOTICED THAT SHR I SANDEEP M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 9 OF 12 BARJATYA, DIRECTOR OF THE DISTRIBUTOR COMPANY M/S B -3 PROJECTS & CONSULTANTS, NAGPUR HAS APPOINTED AS DIRECTOR FROM 10.12.2008 OF THE ASSESSEE COMPANY WITH SHARE HOLDING OF 15%. AF TER APPOINTMENT OF THE SOLE DISTRIBUTOR THE SALES OF TH E ASSESSEE COMPANY WERE INCREASED FROM 5.11 CRORES TO 7.23 CRO RES DURING THE CURRENT YEAR GIVING RISE TO 41% AND IN TERMS OF AMO UNT OF 2.12 CRORES. THIS IS BECAUSE OF THE SERVICES ENTERED BY M/S B-3 PROJECTS & CONSULTANTS, NAGPUR THE TURNOVER OF THE COMPANY R AISED TO 2.12 CRORES AS COMPARED TO PRECEDING YEAR. THEREFORE, C OMMISSION SOF RS.64.16 LAKHS PAID ON TOTAL TURNOVER WHICH COMES T O 8.8% CANNOT BE TREATED AS EXCESSIVE. THE DISALLOWANCE THE PAYME NT OF COMMISSION ON THE GROUND THAT NO SUCH COMMISSION WA S PAID IN EARLIER YEARS, CANNOT BE CONSIDERED AS VALID BASIS, AS WE FIND FROM THE DETAILS SUBMITTED AND AGREEMENT DATED 9.2.2008 THAT THE SALES TARGET ASSIGNED TO THE DISTRIBUTOR OF RS.5.5 CRORES WAS NOT ACHIEVED IN EARLIER YEARS IN TERMS OF AGREEMENT, THEREFORE T HERE WAS NO PAYMENT OF COMMISSION IN THE EARLIER YEARS. THE AO HAS OVER LOOKED THIS ASPECT OF THE AGREEMENT , THEREFORE THE DISALLOWANCE OF COMMISSION MADE BY THE AO IS NOT JUSTIFIED. IT IS A LSO NOT THE CASE OF THE AO THAT THE COMMISSION PAYMENT WAS NOT GENUI NE AND THERE M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 10 OF 12 WAS DIVERSION OF PROFIT. AS WE FIND FROM THE PAPER BOOK PAGE NO.42 TO 43 WHICH ARE THE COPIES OF THE PROFIT AND LOSS A CCOUNT AND INCOME TAX COMPUTATION OF INCOME OF M/S B3 PROJECTS AND CONSULTANTS PVT. LTD, ACCORDING TO WHICH THE AGENT COMPANY HAD SHOWN INCOME OF RS. 20,60,850/-. THEREFORE IT IS C LEAR THAT THE COMMISSION AGENT IS ASSESSED TO TAX AND SHOWN SUCH BUSINESS INCOME, THEREFORE THE IDENTITY OF THE COMMISSION AG ENT IS ALSO PROVED. IN SUCH CIRCUMSTANCES AS STATED ABOVE, THE INCREASE IN TURNOVER OF THE ASSESSEE COMPANY AND THE AGREEMENT WAS EXISTED FROM 2008, WE ARE OF THE CONSIDERED VIEW THAT THE P AYMENT OF COMMISSION ON ACCOUNT OF SALES PROMOTION OF BUSINES S IS ALLOWABLE AS HELD BY THE HONBLE RAJASTHAN HIGH COURT IN THE CASE OF ITO V/S LAXMI ENGINEERING INDUSTRIES 298 ITC 203 (RAJ.). T HE LD. COUNSEL ALSO PLACED RELIANCE IN THE CASE OF DCIT V/S MICROT EX SEPERATORS LTD. 293 ITR 451(KAR.) WHEREIN THE TRIBUNAL FOUND T HAT THE SISTER COMPANY WAS THE SOLE DISTRIBUTOR AGENT FOR SEVERAL YEARS AND HAD SOLE SELLING AGENT OF THE ASSESSEE COMPANY PROVIDED FOR PAYMENT OF COMMISSION AT 10% NOT ON THE NET ENTIRE AMOUNT AFTE R GIVING DEDUCTIONS. TAKING INTO CONSIDERATION OF THESE ASP ECTS OF THE MATTER ALLOWED ENTIRE 10% OF BILL THE APPEAL BEFOR E HONBLE HIGH M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 11 OF 12 COURT WHILE DISMISSING THE APPEAL THAT TAKING INTO CONSIDERATION THE LONG STANDING RELATIONSHIP AND ALSO TAKING INTO CON SIDERATION THE REPUTATION OF THE ASSESSEE AND THE AGENT ALSO IN CO NSIDERATION THERE WAS NO INTENTION TO EVADE THE TAX RIGHTLY ALLOWED T O TAKEN OF ENTIRE COMMISSION. SEEING TO THE FACTS OF THE PRESENT CASE , WE ARE OF THE VIEW THAT EVEN THOUGH IT WAS NOT A SISTER CONCERN AT THE TIME OF ENTERING IN TO THE AGREEMENT, HAS PAID COMMISSION F OR RENDERING SERVICES WHICH HAS RESULTED IN INCREASE OF TURNOVER BY 2.12 CRORES. SIMILARLY IN THE CASE OF PURE PHARMA PVT. LTD V/S CIT (SUPRA) WHEREIN THE COMMISSION WAS PAID TO GOVERNMENT AND I TS AGENCIES AND ALL THE PAYMENT WERE MADE TO THE VARIOUS PARTIE S THROUGH CHEQUES/DEMAND DRAFT AND THE EXPENDITURE WAS FOUND INCURRED FOR BUSINESS PURPOSES IT WAS HELD THAT SUCH EXPENDITURE WERE ALLOWABLE AND CONSEQUENTLY THE ADDITION WAS DELETED. THUS ON THE FACTS AND CIRCUMSTANCES AND THE TRIBUNAL PRONOUNCEMENTS AS CI TED BY THE ASSESSEE, WE DID NOT FIND ANY JUSTIFICATION FOR DIS ALLOWANCE OF COMMISSION WHICH WAS WHOLLY AND EXCLUSIVELY FOR BUS INESS PURPOSES IS ALLOWED AS DEDUCTION OF RS.59,90,620/- TOWARDS COMMISSION PAYMENT. ACCORDINGLY THE GROUND OF APPE AL IS ALLOWED . 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. M/S. PARAG FANS & COOLING SYSTEMS LTD. V ACIT 1(1) UJJAIN, ITA NO.372/IND/2015 A. Y 2011-12 PAGE 12 OF 12 THE ORDER PRONOUNCED IN THE OPEN COURT ON 11.08.201 7 SD/- SD/- ( C.M. GARG) (O.P. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 11 TH AUGUST, 2017 DEV/ COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUA RD FILE. BY ORDER ASSISTANT REGISTRAR, INDORE